Annual Financial Report

CQS New City High Yield Fund Ltd

30 September 2024

 

30 September 2024

CQS New City High Yield Fund Limited
("NCYF" or the "Company")

 Annual Report for the 12 months ended 30 June 2024

CQS NEW CITY HIGH YIELD FUND LIMITED has published its annual report. A copy can shortly be found on the Company's website https://ncim.co.uk/cqs-new-city-high-yield-fund-ltd/, on the National Storage Mechanism (https://data.fca.org.uk/#/nsm/nationalstoragemechanism) and will also be provided to those shareholders who have requested a printed or electronic copy.

Highlights:

·      NAV total return of 19.07% for the year ended 30 June 2024

·      Ordinary share price total return of 22.73% for the year ended 30 June 2024

·      Dividend yield of 8.62%, based on dividends at an annualised rate of 4.50 pence and a share price of 52.20 pence as at 30 June 2024

·      Ordinary share price at a premium of 5.26% as at 30 June 2024

·      £13,480,000 of equity issued during the year ended 30 June 2024

·      Dividend cover of 1.00x for the year ended 30 June 2024

Caroline Hitch, Chair of New City High Yield Fund, commented: "We are delighted with the Company's performance in this financial year, which delivered an impressive 19.07% NAV total return. The share price also performed well, achieving a total return of 22.73% and increasing its premium over NAV. This enabled NCYF to continue to fulfil demand among shareholders for new shares by issuing equity during the period, something of a rarity in the sector. Revenue earnings remained strong, enabling the Board to marginally increase the dividend to 4.50 pence per share and maintain the Company's record of unbroken dividend increases since 2007. Against a backdrop of declining rates forecast, albeit at a steady pace, the global economic outlook appears reasonably good, and we remain optimistic for healthy performance from the Company in the coming year."

Ian "Franco" Francis, Portfolio Manager at New City High Yield Fund, commented: "Prevailing higher interest rates in the financial year have enabled us to find quality investments in stocks and sectors that were previously too difficult to invest in due to lower yields. The broader economic backdrop has also improved, albeit marginally, which has helped both market confidence and the fixed interest markets. We remain positive in our outlook as we continue to identify investment opportunities across a wide and diverse range of sectors and stocks, and we expect to see a resumption of high yield and financial issuances at the end of the third and beginning of the fourth quarters of 2024."

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For Further Information
CQS New City High Yield Fund Limited	T: [phone] E: [e-mail]
Singer Capital Markets	T: [phone]
Cardew Group Tania Wild Henry Crane Liam Kline	T: [phone] M: [phone] M: [phone] M :[phone] E: [e-mail] https://www.cardewgroup.com/
Company Secretary and Administrator BNP Paribas S.A., Jersey Branch Edward Kazibwe	T: 01534 813 913

About CQS New City High Yield Fund Limited

CQS New City High Yield Fund Limited aims to provide investors with a high dividend yield and the potential for capital growth by investing in high-yielding, fixed interest securities. These include, but are not limited to, preference shares, loan stocks, corporate bonds (convertible and/or redeemable) and government stocks. The Company also invests in equities and other income-yielding securities.

Since the Fund's launch in 2007, the Board has increased the level of dividends paid every year. As at 27 September 2024, the Company's dividend yield was 8.69%. In addition to quarterly dividend payments, the Fund seeks to deliver investors access to a high-income asset class across a well-diversified portfolio with low duration to help mitigate interest rate risk.

Further information can be found on the Company's website at https://ncim.co.uk/cqs-new-city-high-yield-fund-ltd/

 

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